For more information contact: Michael Howard 651-296-8873
We began the 2009 legislative session fully aware of the significant challenges facing our great state and nation. With unemployment at a twenty year high, rising health care costs, and the home foreclosure crisis, it was our task to navigate Minnesota through its worst budget shortfall in recent history while preserving the core values and priorities important for the future of our state. In many areas, we moved forward with progressive reforms that will strengthen Minnesota’s future. However, the Governor put up roadblocks to the kind of lasting progressive change Minnesota still needs.
To balance our $6.4 billion state budget shortfall responsibly, we knew that difficult spending cuts would be required, but we also knew that we would be right back in the same place again if we didn’t preserve and protect the core services most important to our short and long term prosperity. Our balanced budget made about $1.6 billion in spending cuts, but was prioritize to have a minimal impact on loss of jobs. We held K-12 education funding flat, held down higher education tuition and property taxes and preserved health care for Minnesotans.
In order to preserve these core Minnesota values, we balanced our spending cuts with $1 billion in additional revenue, which would mainly be raised through an income tax increase on the wealthiest Minnesotans. Joint filers earning $300,000 per year would pay an additional $109 per year in taxes. We felt this was fair way of asking all Minnesotans to share in the budget solution and to protect our schools, nursing homes, and hospitals from catastrophic budget cuts.
The Governor had a different plan to raise revenue – borrowing. His proposal called for the state to take out a $1 billion loan, and then pay it back over the next twenty year, plus an additional $600 million in interest. The Legislature felt asking the next generation of Minnesotans to pay off our current budget shortfall was reckless and irresponsible. It was voted down on the House floor bipartisanly on a vote of 131 to 2.
Unfortunately, the Governor decided he would not participate in any compromise, even after his borrowing scheme was rejected by the Legislature. He signed all of the major funding bills we sent to him into law, but vetoed the revenue bill that would have paid for them. In other words, he left a $2.7 billion gap in the budget with his veto pen. He will now pursue an unallotment process to make additional spending cuts to close the gap he left. Unfortunately, his unallotment is expected to be most deep damaging to K-12 schools, hospitals, health care for the disabled and mentally ill. By dramatically cutting aid to cities and counties, he will also increase property taxes on Minnesotans.
The Governor’s go-it-alone strategy to make deep budget cuts is discouraging because I believe it will make it more difficult for Minnesotans to get through these challenging economic times. But this is no time to hang our heads. It’s now more important than ever to work together toward the transformative political change that Minnesota so desperately needs.
We must continue working to dramatically reform Minnesota health care system so that every Minnesotan has access to affordable health care. We must invest in early childhood, K-12 and higher education so that Minnesota can maintain the best education system and workforce in the nation. And we must restore balance and fairness to Minnesota tax system so that lower and middle class families who are bearing the brunt of this economic recession can succeed in the new economy.
I look forward to your ideas, input and encouragement as we together work to remake the Minnesota we believe in.